8 Ways to Partner With Other Financial Institutions and Why You Should

 

Why you should partner with another financial institution

 

Have you ever thought of partnering with another financial institution? You work with community organizations, nonprofits, businesses, and community members, why not other banks and credit unions?

 

Partnering with another financial institution may feel counterintuitive. They’re often seen as competitors. So why would you want to help them out?

 

Sure, in some ways other financial institutions are your competitors. You’re competing for customers/members and trying to provide better services. But when it comes to making a difference in your community, partnering with another institution can help you have an even bigger impact. 

 

Two hands are better than one (or maybe two hundred in this case). The more people working to help your community, the better. And if that means partnering with another institution, embrace it. 

 

Partnering with another institution offers several benefits, including:

 

• Spreading the word about your own institution

• Serving the community

• Earning CRA credit 

• Better serving low-income communities

• Building relationships throughout your community

• Showing community members that you truly care

• Getting the numbers needed to make a real impact

• Helping small businesses grow

• And so much more

 

 

 

 

While we believe these benefits far outweigh the costs, there may be some challenges, too. Building a partnership with any organization is never easy. And when you’re building one with someone you’ve previously considered a competitor, there are bound to be hiccups. 

 

Some challenges you might face include:

 

• Dealing with unfamiliar company cultures

• Getting past the “competitor” stage

• Making sure each institution mutually benefits from the partnership

• Deciding who gets “credit” for various aspects of the partnership

 

Yes, you may have to hurdle these challenges. But by following these guidelines, we believe you can create a wonderful partnership that will last for years to come: 

 

• Establish clear communication

• Set clear boundaries

• Schedule regular check-ins to ensure that the partnership is meeting the goals of both parties equally

• Create goals that will help determine if the partnership is working

• Focus on the community!!! 

 

Focusing on the community is a big one. Partnering with other institutions should be all about helping your community and having the biggest impact possible. If this is your focus, other challenges may just fade away. 

 

Now that you understand the challenges and benefits, how exactly does such a partnership work? 

 

How to start

 

Sometimes the hardest part of any partnership is getting started. You have lots of ideas, and you know that partnering with other banks and credit unions in your area can be beneficial for everyone involved. But now what? 

 

To start, identify which institutions you’d like to partner with. Here are some questions to ask yourself:

 

• Do they share similar corporate and company values? 

• Are they different enough from your institution that you can cross the “competitor” gap? 

• Do you have any prior relationships that may open the door?

• Do they have similar resources that would make a partnership mutually beneficial?

 

Answering “no” to any of these questions isn’t a dead stop. You can still pursue them and end up with a wonderful partnership. Just be aware that you may have to cross some extra hurdles.

 

 

 

 

Now, let’s say you want to start simple by organizing a single event with a nearby bank. 

 

First, reach out. If you know someone at the bank, start there. Even if your contact isn’t in the correct department, they may be able to introduce you to someone who is. Send an email, make a call, visit in person. Whatever works to get you in the door. 

 

If that bank is receptive to the idea of hosting a joint event, great! And if you get a hard no or they aren’t interested right now, that’s okay! You tried and that’s what matters. Just thank them for their time and let them know they’re free to reach out if they change their minds. Not every institution will be a good fit for your own, and maybe down the road, another door will open. 

 

But if that bank is open to your proposal, it’s time to start planning! For this phase, you can probably treat it as you would any other organization or nonprofit partnership. Figure out what works for both your institutions, come up with a plan, make assignments, and hold a sweet event. 

 

Throughout the whole process, remember what we talked about before. Establish clear communication, set clear boundaries, schedule regular check-ins, create some goals, and above all, focus on the community. 

 

Once the event is over, reflect on the process. Did you enjoy working with this institution? Were you a good match? Did you meet the goals you set at the beginning? Did community members like seeing you together? If the answer to all of these was “yes,” you have a potential long-term partnership on your hands! 

 

Now it’s time to build that partnership further. Here are some ideas on how you could partner with other financial institutions. Any of these ideas might serve as the beginning of a partnership, or they may come later as you get some other events under your belt. 

 

8 ways to partner with another financial institution

 

1. Host a community event

 

Just imagine how cool it would be if employees from several financial institutions showed up to the same event and had a HUGE impact together. No competition, no promoting your services over another’s. Just two or more banks/credit unions working together to better their community and build relationships. How cool would that be?

 

And just a little hint, Kadince software makes it easy to plan, execute, and report all types of events. 

 

2. Organize a community-wide volunteer day

 

Community events focused on volunteerism may have an even bigger impact. Every community has nonprofits and organizations that could use some help. And most banks and credit unions have some form of employee volunteer program. 

 

Institutions like Fox Communities Credit Union and Premier Community Bank have held employee-wide volunteer days where every available employee serves their community for a day. These events have wide impacts and have served to promote each institution’s services and grow their connections in the community. Now imagine if these institutions had held their volunteer days together. What an impact!

 

Working with other financial institutions to serve the community would help employees make connections in the industry and show that your institution cares. Not to mention community members are bound to appreciate your work and be grateful for the extra hands. 

 

 

 

3. Teach financial literacy

 

Financial education is a cornerstone of any financial institution’s community services. Almost every bank and credit union has a financial literacy program (and if you don’t, you should), so it makes sense to work together to have a greater impact. 

 

You could go to schools and teach students together. You could hold a joint financial literacy fair. You could offer discounted rates and other perks to community members who complete any institution’s financial literacy course, not just your own. There are so many possibilities, and it’s up to you and the other institutions in your community to determine what will work best. 

 

And don’t forget about earning CRA credit for your financial literacy program. 

 

4. Offer joint scholarship or grant opportunities

 

Does your bank or credit union have a scholarship or grant program? This is a great way to support your community, and recipients will likely hold your institution in high regard. 

 

What if you partnered with another institution to offer these scholarships and grants? Pooling resources can help you make a more significant impact, whether that’s giving higher dollar amounts or rewarding more students/community members. Both institutions receive some love and more students and community members can benefit. 

 

Supporting your community shouldn’t be a competition, and when it’s a win-win-win situation like this, working together just makes sense. 

 

5. Sponsor a nonprofit

 

Partnering with nonprofit organizations is the bread and butter of bank and credit union community support. You’re probably working with many of the same nonprofits as other institutions in your area, so why not work together to make a bigger impact?

 

In addition to your normal community support activities, you could partner with another financial institution to highlight a new nonprofit each month. With both institutions promoting, supporting, and donating to the cause, imagine what that nonprofit could do! 

 

Maybe your institution specializes in providing tech support while another institution in your area specializes in raising funds and gathering community support. On your own, you could still have an impact and help that nonprofit grow. But by working together, you can give that nonprofit crucial support that takes them further than you ever could on your own. Plus, you’ll likely garner community support for both institutions. 

 

 

 

6. Make a friendly bet

 

Who says banking has to be boring and stuffy? Why not make a friendly bet with another institution? (The key word is “friendly.” Remember, we’re building relationships here.)

 

According to this Financial Brand article, Notre Dame FCU and Alabama Credit Union (both football team sponsors) once competed to see who could get the most credit card applications by the time their teams played one another at the national championship. The loser had to pay $10,000 to the charity of the winner’s choosing. 

 

What a fun way to work with another financial institution, boost both businesses, and get the community involved!

 

7. Place a deposit in another institution

 

Wait…what? At this point, you may be thinking, “You want me to deposit money into another bank? That’s going too far!” 

 

It might sound a little crazy at first, but it actually makes a lot of sense (especially if you’re a large bank or credit union).

 

Small institutions, especially mission-based institutions like MDIs, CDFIs, and MWLIs, may be better positioned to serve the community and make a difference than large institutions. Yes, large institutions have the numbers and capital to serve their community, but often these smaller banks have the intimate relationships and on-the-ground support to know exactly where their efforts are best directed.

 

Equity Equivalent Investments and Capital Investments are a great way to test the waters and see if this kind of partnership is right for you. By investing in these institutions, you can help increase the capital available to them, which will amplify their ability to provide loans, financial services, and economic development projects in underserved areas.

 

Not to mention, when the updated CRA regulations take effect, investing in these institutions will help you earn CRA credit and boost your program. Really, what’s the downside? 

 

8. Support an MDI, CDFI, or MWLI

 

Placing deposits in these institutions isn’t the only way to provide support. Supporting mission-based institutions like Minority Depository Institutions (MDIs), Community Development Financial Institutions (CDFIs), and Minority- and Women-Owned/Low-Income Institutions (MWLIs) is a great way to spread the love. 

 

These institutions are often small and don’t have as many resources as the big banks and credit unions of the world. But they’re also very connected to their communities and are able to do really great things with the support they have. 

 

Beyond financial support, you might try offering volunteers, working together on an event, sponsoring them, providing financial education, and so much more. Once you start looking for ways to support other institutions, you’re bound to find plenty of exciting opportunities. And sometimes all they need is to know someone has their back. 

 

 

 

How you can use Kadince to track partnerships

 

Partnering with other financial institutions is all well and good, but you need some way to track that partnership. You can’t rely on others to remember exactly what was discussed and planned between institutions. And the more partnerships you pursue, the harder it will be to keep track of data and know what’s coming. 

 

Kadince software makes it easy and track and manage all bank/credit union partnerships. That includes partnerships with community organizations, nonprofits, and other financial institutions. 

 

With Kadince, you can keep a profile for each organization you’re working with. This profile includes history like donations/sponsorships/grants, employee involvement, impact purpose, location, and more. You can store mission statements, board member information, and supporting documents. 

 

And when it’s time to plan and execute events, Kadince makes it easy. With Kadince, you can:

 

• Manage attendee lists and send reminders,

• Log volunteer hours after the event

• Match employees with events they'll enjoy

• Run a smooth event that coworkers will praise for years to come 

 

What are you waiting for? Discover how Kadince can help you manage your institution’s partnerships and streamline events by scheduling a 30-minute demo.

 

Schedule Demo

None of Kadince, Inc., its affiliates, or its respective employees, directors, officers, and agents (collectively, “Kadince”) are responsible or liable for any content or information incorporated herein. Read full disclosure.